Published On: Thu, Mar 6th, 2014

Jake Seid Picks Up $50 Million In Investment Funding For Auction.com From Google Capital

Seid, President of the online real estate portal plans to invest some of the capital injection to expand the site’s mobile presence.

jake-seid-auction.com

For the second time in as many weeks Google recently launched growth capital division aptly entitled Google Capital has made another major investment, this time in online real estate marketing portal,  Auction.com. Google Capital’s investment has now placed a value on the company in the region $1.2 billion.

Announcing  the investment Jake Seid stated that the $50 million invested by Google Capital in Auction.com will go a long  way in helping the company to establish a mobile real estate presence, with  the real estate industry increasingly moving towards to communication  via tablets and Smartphones. Auction.com recently  launched  an iPad app recently and are going to continue to  invest in the mobile sphere.

Pointing out that Auction.com has been permanently in the black since its founding, Jake Seid  went on to add that the investment from  Google Capital is its  infusion of venture capital, although the company had been a previous recipient of  private equity funding from Connecticut based, Stone Point Capital.

“This investment is really about forming a partnership with Google, who are  world leaders in search engine management , as well as in mobile and online advertising, making  for a valuable relationship  for Auction.com .” Summed up Seid.

Since it was launched in 2007 Auction.com has earned themselves a reputation as an online marketplace for those involved in real estate, either buyers or sellers.m running up sales worth $7 billion in real estate online last year, through using  an upmarket version of  the “countdown clock” method that was pioneered on EBay. Overall has auctioned $26 billion of assets since 2007, diversifying from foreclosed homes sold on courthouse steps to selling luxury properties, office buildings and European real estate.. In recent years the company has diversified from this starting market in the ever-growing  numbers of foreclosed properties that emerged after the sub-prime mortgage collapse of 2008, since diversified their activities  into luxury properties as well as other sectors of the real estate market.

 

According to industry reports, Google Capital has been given an initial fund of $300 million to invest, equivalent to the same amount that was handed to Google Ventures, their other investment offshoot  by Sergei Brin  and Larry Page.

Last week, Google Capital announced that they would be making  a $40 million investment in Renaissance Learning, an online learning company. Since their foundation Google Capital have placed funds in SurveyMonkey, a  web survey development concern  and Lending Club,  a US peer-to-peer lending company, which, ironically, was originally an offshoot of Facebook and are headquartered in San Francisco, California.

Commenting on the investment, David Lawee,  a partner in Google Capital stated that Auction.com has quietly built one of the largest marketplaces on the Web,  “We are of opinion that Auction.com can fundamentally change how real estate, and particularly commercial real estate, can be bought and sold, leveling the playing field for smaller investors.” Summarized Lawee, who will be joining the board of Auction.com alongside its founders Rob Friedman and Jeffrey Frieden.

Jake Seid graduated with  an M.Eng. Electrical Engineering and Computer Science from  Massachusetts Institute of Technology (MIT)  later going on to gain  a Batchelor of Science degree, also in Electrical Engineering.

Jake began his business career in business development at  Boston Technology (Comverse) moving on to become a Product Line Manager at Cisco Systems later joining Cisco’s cable business division, in a period when the unit’s annual turnover   grew from a $1 million to $1 billion. Seid is recognized as being  responsible for the successful launch and subsequent management  of the industry’s first DOCSIS-based cable modems and routers which was awarded prizes for the  “Best of Show“ and “Best Networking Hardware“ at Comdex’99.

Jake Seid  left Oracle to join Lightspeed Venture Partners I, L.P.,  where he worked in a number of the company’s divisions, handling investments in mobile, Internet, systems, software, and components before joining  Auction.com , as president in  April 2013.

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